A CRITICAL REVIEW ON SURVEYS OF VALUE-BASED MANAGEMENT Research Paper

A CRITICAL REVIEW ON SURVEYS OF VALUE-BASED MANAGEMENT - Research Paper Example VBM has come to replace them all as a better management technique (Brigham, and Houston, 2009). though there is still something that cannot be taken for granted in any such novelty, i.e. the degree of efficacy in real world business contexts. It’s all the more imperative to consider this sudden spurt of interest in VBM as against profit-based approaches that were hitherto adopted by both small and big companies in order to measure financial performance of the company (Brigham, and Ehrhardt,2007). According to those vociferous critics of the method this annual ritual has had very little success by way of a system of acceptable metrics that truly demonstrated real or discounted cash flows of the company. Such palliatives are to be abandoned now and a more realistic system of metrics based on verifiable and measurable concepts ought to be adopted. It’s here that VBM comes as both a reliable tool and a systematic approach. Capital structure of the firm as divided into equity and debt has been of little significance to an outsider except for an investment consultant and a professional investor because the bewildering system of metrics doesn’t mean anything to the layman. This particular instance of failure associated with many other approaches to management has oft been cited as one of the very sound bases for a new management approach by critics. Thus the concept of VBM has come handy in this context too, owing to the fact that orthodox management approaches are all none too well defined to include performance related dynamics (Copeland, and Dolgoff, 2005). In other words capital must be invested in the business only when its rate of return exceeds the cost of it. Value parameters of VBM are quite well defined to include such variables as tax exemptions on capital investment and the corresponding value gains in alternate investments. Net returns on investment ought to be predictable and therefore uncertainty

How Do The Specific Course Materials Connect, Align, Support, and Term Paper

How Do The Specific Course Materials Connect, Align, Support, and Intersect With Concepts Addressed In The Book The Servant - Term Paper Example This research will begin with the statement that effective leadership is one of the major attributes of organizational success. Northouse has described leadership as a process that assists individual to influence a group of people in terms of achieving a common goal. Leadership acts as a catalyst to influence four fundamental factors of an organization’s productivity such as labor, land, entrepreneurship, and capital. The leadership style of management or owners is very important for effectively structuring the culture of the organization. There are a number of leadership styles that have been evaluated and examined by researchers overall period of time. As per Selznick, the style of leadership must differ according to the structure of the organization, work culture and personality as well as tolerance of subordinates. Hunter has described the effectiveness and importance of servant leadership for organizational management in his book â€Å"The Servant†. The theory of s ervant leadership illustrates that in order to increase the effectiveness of leadership activities a leader needs to serve first. Rather than a leadership style or technique, servant leadership can be described as a pattern of behavior that can assist management to gather long-term benefit. Hunter has described the impact and application of this leadership style through the tale of a business executive and his failure as a boss, coach, father, and husband.